Property Tax deduction if Paid by Non-Owner


D

dhensley

I am in AMT and State Property (Real Estate)tax is not
deductible. I a third party friend pays my property tax (as
a gift to me, under $10,000), may he deduct the property tax
payment on his federal return, even though he is not the
owner of the property?
 
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J

Jo Firey

dhensley said:
I am in AMT and State Property (Real Estate)tax is not
deductible. I a third party friend pays my property tax (as
a gift to me, under $10,000), may he deduct the property tax
payment on his federal return, even though he is not the
owner of the property?
No

Jo
 
H

Herb Smith

I am in AMT and State Property (Real Estate)tax is not
deductible. I a third party friend pays my property tax (as
a gift to me, under $10,000), may he deduct the property tax
payment on his federal return, even though he is not the
owner of the property?
NO
 
H

Helen P. OPlanick EA

I am in AMT and State Property (Real Estate)tax is not
deductible. I a third party friend pays my property tax (as
a gift to me, under $10,000), may he deduct the property tax
payment on his federal return, even though he is not the
owner of the property?
No.

Helen, EA in PA
Member of The Tax Gang
President, PA Society of Enrolled Agents
Campaigning for NAEA Board of Directors - Looking for YOUR vote
 
D

Drewremedy

I am in AMT and State Property (Real Estate)tax is not
deductible. I a third party friend pays my property tax (as
a gift to me, under $10,000), may he deduct the property tax
payment on his federal return, even though he is not the
owner of the property?
NO, the tax is not deductible to him unless he has a legal
obligation topay it.

Hint: If this relationship is likely to continue you may
want to have him or her buy a nominal share in the property.
ASK counsel before you do all this to be sure you haven't
triggered other landmines!
 
P

Phil Marti

I am in AMT and State Property (Real Estate)tax is not
deductible. I a third party friend pays my property tax (as
a gift to me, under $10,000), may he deduct the property tax
payment on his federal return, even though he is not the
owner of the property?
No. One must both be liable for and pay the tax to have a
deduction.

Phil Marti
Topeka, KS
 
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A

Arthur Kamlet

dhensley said:
I am in AMT and State Property (Real Estate)tax is not
deductible. I a third party friend pays my property tax (as
a gift to me, under $10,000), may he deduct the property tax
payment on his federal return, even though he is not the
owner of the property?
Nope.

__
Art Kamlet ArtKamlet @ AOL.com Columbus OH K2PZH
 
D

Don Rosenberg

dhensley said:
I am in AMT and State Property (Real Estate)tax is not
deductible. I a third party friend pays my property tax (as
a gift to me, under $10,000), may he deduct the property tax
payment on his federal return, even though he is not the
owner of the property?
No.

Don Rosenberg, EA
 
A

Arthur L. Rubin

dhensley said:
I am in AMT and State Property (Real Estate)tax is not
deductible. I a third party friend pays my property tax (as
a gift to me, under $10,000), may he deduct the property tax
payment on his federal return, even though he is not the
owner of the property?
No.
 
P

Paul A. Thomas

dhensley said:
I am in AMT and State Property (Real Estate)tax is not
deductible. I a third party friend pays my property tax (as
a gift to me, under $10,000), may he deduct the property tax
payment on his federal return, even though he is not the
owner of the property?
Not unless he is ~obligated~ to make the payment. So, can
the county collect the tax from him?

If so, then yes. If not, then no.
 
H

Harlan Lunsford

dhensley said:
I am in AMT and State Property (Real Estate)tax is not
deductible. I a third party friend pays my property tax (as
a gift to me, under $10,000), may he deduct the property tax
payment on his federal return, even though he is not the
owner of the property?
No.

sorry for the short form answer, but nothing more to say.

Cheer$,
Harlan Lunsford, EA in LA
 
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D

Dave Woods, EA

dhensley said:
I am in AMT and State Property (Real Estate)tax is not
deductible. I a third party friend pays my property tax (as
a gift to me, under $10,000), may he deduct the property tax
payment on his federal return, even though he is not the
owner of the property?
No.

--
David M. Woods, EA
Boston, MA 02109

Postings here are general information only and not to be
relied upon as advice.
 
S

Shagnasty

dhensley said:
I am in AMT and State Property (Real Estate)tax is not
deductible. I a third party friend pays my property tax (as
a gift to me, under $10,000), may he deduct the property tax
payment on his federal return, even though he is not the
owner of the property?
Neither one of you can deduct it. It is a gift. No gift tax would be due
for this amount.
 
C

Christopher Green

I am in AMT and State Property (Real Estate)tax is not
deductible. I a third party friend pays my property tax (as
a gift to me, under $10,000), may he deduct the property tax
payment on his federal return, even though he is not the
owner of the property?
Nope. Own the property, pay the tax, take the deduction if
you can. Nobody else can take it for you. (There are some
exceedingly rare cases of deductions being allowed for
non-owners. They arise only in extraordinary situations,
nothing like what you describe.)
 
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D

D. Stussy

dhensley said:
I am in AMT and State Property (Real Estate)tax is not
deductible. I a third party friend pays my property tax (as
a gift to me, under $10,000), may he deduct the property tax
payment on his federal return, even though he is not the
owner of the property?
No. The tax is not imposed on him.
 

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